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Degree of Operating Leverage
A measure of the firm's operating leverage, which is calculated as the contribution margin distributed by income before taxes. A rigid with a high degree of operating leverage will have a huge proportion of fixed costs in its total costs. This kind of rigid will experience a largest percentage increase in income from a given percentage increase in unit sales.
Earn out arrangements Consideration could be delayed and paid only upon achievement of certain criteria. For illustration the predator company may pay additional cash if acq
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